Nigeria moving to abolish Rural Electrification Agency because of fraud

Jun 24, 2009 02:00 AM

President Umaru Yar'Adua is moving to abolish the Rural Electrification Agency (REA), the body at the centre of the N
5.2 bn fraud allegedly masterminded by some members of the National Assembly and senior officers of the
government.
The President's intention conveyed in a statement to the Senate came as he also requested the approval of N 25 bn for
the expansion of the main road leading from the Abuja airport to the city centre. Work on the expansion project
remarkably was flagged off by the President more than a month ago.

In his statement seeking the repeal of the REA, President Yar'Adua said: "I forward herewith for kind consideration
and passage into law, the attached draft Bill for an Act to Amend the Electric Power Sector Reform Act 2005 to repeal
the Rural Electrification Agency and for matters connected thereto."
"Pursuant to the above, therefore and in line with the powers vested in the National Assembly, I hereby present the
said Bill for the kind consideration of the Distinguished Senators of the Federal Republic of Nigeria. It's my hope
that the Distinguished Senators will consider and pass the amendment Bill in your usual expeditious manner. Please
accept, Mr Senate President the assurances of my highest consideration."

The REA became the centre of national attention with the revelation of the N 5.2 bn fraud allegedly masterminded by
Senator Nicholas Ugbane chairman of the Senate committee on Power and his House counterpart Mr Ndudi Elumelu and some
other members of the House of Representatives and officials of the Ministry of Power and the REA. The REA was
established in 2006 to facilitate the rapid access of the rural and semi-urban communities in the country to
electricity in a cost effective manner using grid and off grid options.
In his second letter dated 5th June 2009 seeking for additional funds to build the access road to the Abuja
International Airport, he said: "This request is to enable the Federal Capital Territory Administration (FCTA) fund
the construction of additional lanes on each carriage way of the Outer Northern Expressway (ONEX) including two
fly-over bridges and rehabilitation of Airport Fly-Over."